State excise swings are a business reality: Diageo India CEO

BENGALURU: Diageo India chief executive Praveen Someshwar said the country’s fragmented excise regime remains a structural feature of the business and that companies must adapt to changes at the state level rather than expect national harmonisation. “Don’t run away from it, it’s reality. One state swings one way, another opens up. We balance consistently,” he said at a media interaction in Bengaluru on Wednesday.Someshwar noted that liquor taxation remains under the control of individual states, making a unified national liquor policy unlikely in the foreseeable future. “Can liquor move from a state policy to a national policy? Good question to ask to the right people… over the foreseeable future, I don’t think so,” he said.The comments come amid repeated revisions to excise duties and licence fees in large markets such as Maharashtra and Karnataka, which directly influence pricing and availability. Someshwar said the company manages volatility by balancing shifts across states, with growth in one market often offsetting pressure in another. “When one swings a certain way, another opens up. That’s what we’ve noticed,” he said.Despite the regulatory complexity, Someshwar added that Diageo India continues to expand its premium portfolio and invest in innovation. The company has guided for double-digit growth in its premium-and-above segment, while maintaining focus on sustainability and craft propositions.Someshwar said regulatory engagement remains part of ongoing advocacy, but reiterated that the industry must work within existing constraints. “We look at it in a constructive manner… nothing’s going to impact tomorrow, but are we looking at it and working on it? I can assure you that,” he said.